Business Studies, asked by gahlotnidhx, 2 months ago

“If prices are too high, the business is lost. If prices are too low, the firm may be lost.”
Comment on the statement.

Answers

Answered by ThePerfectGirl
4

Answer:

the price must be normal so it would not be lose and you will have profit

Answered by roopa2000
0

Answer:

A company with no influence or authority on the market price is referred to as a price taker. To account for consumer differences in willingness to pay for a good or service, pricing discriminating or price differentiating businesses typically charge various rates to various clients.

Explanation:

A perfectly competitive market structure will most frequently contain a price-taking enterprise. Intense market rivalry or competition levels prevent businesses from setting or controlling the market price for the in-question item or service. As a result, businesses take rather than set prices in competitive marketplaces.

On the other side, price discriminating or differentiating businesses charge different prices for various customer groups depending on their age, income, caste, religion, and other demographic characteristics.

It suggests that businesses have partial or whole control or power over market prices.

Price discriminating or differentiating companies may be observed in an oligopolistic or monopolistic market with significantly less market competition or rivalry.

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